RAKBank net profit vaults 36% in first half

The bank reported a net profit of Dh468.3 million for the six months ended in June 2010. Net interest income of the bank at grew Dh767 million, a growth of 42.2 per cent compared to the first half of 2009. “The second quarter result reflects the growth in the bank’s customer base across a wide range of personal and small business segments which is emphasised by our continual focus on excellent client service,” Graham Honeybill, general manager of the bank said.

The bank has continued to follow a measured approach to expansion, with a focus on maintaining a consistent and sustainable level of growth through a careful lending policy, a statement issued by the bank said. Gross loans and advances stood at Dh15.5 billion, an increase of 24.1 per cent compared to the first half of 2009, and an increase of 11.8 per cent over the second half of 2009.

During the first six months the bank has taken adequate provisions on its loan portfolio. Total impairment charges for the period were at Dh148.8, higher by Dh71.6 million compared to the same period last year.

“We are, however, seeing an improvement in the trends. The total impairment charges for the second quarter of the year were Dh67.5 million compared to a the first quarter charges of Dh81.3 million,” Honeybill said.

Fee, commission and other income stood at Dh303.2 million, an increase of 23.6 per cent compared to the previous half year.

By the end of June 30, 2010, total assets were Dh19.8 billion, up by 28.9 per cent and 15.8 per cent over the first half and second half respectively of 2009.

abdulbasit@khaleejtimes.com